Weak consumer demand mars Hindustan Unilever Q2 earnings

MUMBAI (Reuters) - Sales growth at Hindustan Unilever slowed for the sixth straight quarter between July and September and India's largest consumer goods maker said weak consumer demand would continue to drag until well into next year.

The company's fiscal second quarter results came after parent Anglo-Dutch consumer conglomerate Unilever warned in September that a slowdown in markets such as India had accelerated.

"The slowdown in business environment has continued in this quarter both in terms of volume and value growth," Chief Financial Officer R. Sridhar told reporters at an earnings press conference late on Saturday. "In particular, premium segments and discretionary categories are much more under pressure."

Sales volumes in the September quarter grew 5 percent, in line with market estimates of about 4-5 percent growth but slower than the 7 percent growth logged a year before.

India's economy is facing its worst downturn since 1991. That has hit discretionary consumer spending, leaving HUL's volume growth stagnant at around 5 percent for the past two quarters.

HUL said the slowdown in sales growth could last until next March although it is hopeful of a pick-up in the medium- to long-term as consumer demand improves.